Buying insurance is identical to the creation of an emergency fund, where any untimely accident does not cause the life of other family members to come to stand still.

Why investment? Buying life insurance is buying peace of mind because once you enrol for the scheme, your dependents’ life remains uninterrupted in case of any fatality to the enroller.

In such cases, insurance could not be termed as an expense. Some of these insurance policies not only refund the amount of premium paid but also provide a bonus amount along with sustained life cover. There are various types of insurance such as term insurance, endowment plan, unit-linked term insurance, etc. Thus, any premium paid to avail insurance policy is an expense in the literal term. Why expense? Life insurance is a service provided by agencies to provide security against critical illness or death and such service is bought by the person insured by paying a certain amount called a premium. When it comes to insurance or personal finance decision, it is wise to avoid outside noise. Until Covid-19 many of us treated insurance as an unnecessary expense. Life of dependents such as children, spouse or elderly parents may come to standstill in case of the sudden loss of a sole or primary earner in the family. Life insurance is the creation of monetary security for your dependents in your absence.

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